Photo: Bill Oxford / iStock / Getty Images
FLORIDA - AAA has announced another round of rate reductions for its Florida policyholders, citing a more stable insurance market and lower claims costs across the state.
The company said this will mark the fourth rate decrease since the beginning of 2025, bringing additional savings to customers in the year ahead.
According to AAA, auto insurance premiums have dropped by more than 15% and homeowners insurance rates by about 5 percent since January.
Ryan Gorman and Dana McKay cover this story and more on The Ryan Gorman Show:
The combined reductions are estimated to save Florida members approximately $70 million annually.
The insurer attributed the continued cuts to legislative changes that have reduced lawsuit activity and made claims outcomes more predictable, helping to stabilize the overall market.
AAA spokesperson Mark Jenkins said that a more predictable claims environment has lowered the company’s financial risk, allowing it to pass those savings to its members.
The company credited statewide legal reforms as a key factor in reducing claim-related expenses.
AAA has filed for regulatory approval for a fourth rate decrease, which could take effect in early 2026.
If approved, the new rate filing would continue the company’s trend of providing relief to Florida homeowners and drivers facing rising insurance costs in recent years.
State regulators and industry analysts say the recent reforms have encouraged insurers to re-enter or expand within Florida, contributing to improved stability in the state’s insurance market.